Commercial Transactions in China
Commercial Transactions in ChinaUpdated on Wednesday 20th December 2017
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The Chinese business market is one of the most attractive to foreign investors, as China is now one of the leading economies of the world. Foreign entrepreneurs who are interested in opening a business here should know that the commercial transactions carried out by the company are regulated by the local civil legislation; our Chinese lawyers can provide you with further information on this subject and can help entrepreneurs establish their businesses regardless of the chosen field of activity.
Commercial transactions in China
Commercial transactions refer to the financial interaction established between two parties, when various goods, services or other valuable assets are being traded in exchange for remuneration. Commercial transactions and the elements of the transactions are regulated by the local legislation, respecting international standards of law. The main elements of a Chinese commercial transaction are:
• contractual relations, established under a standardized contract;
• sale of goods, which represents one of the most common commercial transaction, is defined by an exchange of money for a certain item, given to the seller by the buyer;
• obligations of the seller – he is required to deliver the products or services provided, offer a warranty as stipulated in the contract and must transfer the ownership of the goods when the buyer pays his financial obligations;
• obligations of the buyer – the main obligation is related to the payment of his or her purchase;
• sales legislation – each contract is established by respecting the commercial legislation applicable in the country where the transaction is held; our law firm in China can provide you with further information on the elements of a commercial transaction.
We have prepared a video for a better understanding of the commercial transactions in China and the legal aspects related:
Commercial transaction legislation in China
Commercial transactions in China are regulated by the legislation applicable under the Civil law. More specific legislation is given by the Chinese Commercial law, which is organized under the following principles:
• organization of commercial subjects – referring to the incorporation of a legal entity, which is allowed to perform specific activities;
• profit protection – specified in the contracts signed by the Chinese companies;
• enabling transactions;
• fairness- promoting honesty in the commercial transactions between companies;
• safety of the commercial activities.
If you need further information on commercial transactions, please contact our Chinese attorneys, who can offer you assistance on this matter.